RMDs

A lump-sum distribution for net unrealized appreciation on employer stock can slash a tax bill in half, but there’s plenty of fine print.

With accounts now often reaching seven figures, estate planning expert Natalie Choate delved into the complexity of the increasingly important tool.

There are still several moves that clients can make to reduce their 2018 tax bill.

Errors are regrettably common. They are also easily avoidable.

Those who fail to meet the cutoff face a penalty equivalent to 50% of their required minimum distribution.

A higher standard deduction makes itemizing deductions less valuable.

The tax law has made deducting philanthropic contributions more difficult, but there are ways to help clients reap benefits from their generosity.

To qualify for this feature, clients should have reported a minimum amount for at least 11 years.

Those who fail to repay their loans on time may face early withdrawal penalties.

If the client makes a mistake, they are advised to take the RMD as soon as they discover it so they can ask the IRS for a waiver of the penalty.